Crowdstrike Holdings Inc (NASDAQ:CRWD) stock rose 3.80% (As on August 29, 11:24:50 AM UTC-4, Source: Google Finance) after the company revised its outlook downward following a quarter that saw the company shrouded in controversy following an update to its Falcon cybersecurity product that brought down systems across much of the world. The company ended the quarter with annual recurring revenue of $3.86 billion, up 32% year-over. Cash flow from operations in the quarter came in at $326.6 million, up from $244.8 million in the second quarter of fiscal 2024. Non-GAAP income from operations was $226.8 million, compared to $155.7 million in the second quarter of fiscal 2024. CrowdStrike ended the quarter with $4.04 billion billion in cash and cash equivalents on hand. Subscription revenue was $918.3 million, a 33% increase, compared to $690.0 million in the second quarter of fiscal 2024. Non-GAAP subscription gross margin was 81%, compared to 80% in the second quarter of fiscal 2024.  Non-GAAP net income attributable to CrowdStrike was $260.8 million, compared to $180.0 million in the second quarter of fiscal 2024.

CRWD in the second quarter of FY 25 has reported the adjusted earnings per share of $1.04, beating the analysts’ estimates for the adjusted earnings per share of 97 cents. The company had reported the adjusted revenue growth of 32 percent to $963.9 million in the second quarter of FY 25, beating the analysts’ estimates for revenue of $958 million. The company has exceeded $1 billion in total sales over the lifetime of its partnership with CDW Corporation, and achieved CDW’s Diamond Level Partner Status.

Moreover, the company has announced a strategic partnership with Hewlett Packard Enterprise to secure end-to-end AI innovation, including large language models, accelerated by NVIDIA. The company has partnered with technology distributors Ingram Micro, M3Corp and Tecnología Especializada Asociada de México to accelerate adoption of the AI-native CrowdStrike Falcon platform across Latin America.

For its fiscal 2025 third quarter, CrowdStrike expects adjusted earnings per share of 80 to 81 cents on revenue of $979.2 million to $984.7 million. The revenue outlook was below an expected $1.01 billion.

For its full fiscal year, the company expects earnings per share of $3.61 to $3.65 on revenue of $3.89 billion to $3.902 billion. Analysts were looking for $3.90 and $3.955 billion and CrowdStrike had previously forecast revenue of $3.993 billion at the midpoint for the full fiscal year.